Top 2 Financial Modeling Services In Singapore To Explore

Finance is a domain that holds a significant seat in public esteem. Finance affects each of us deeply and the extent of this effect is only felt more strongly by those who possess the most amount of money. From the wealthy to big corporations, finance is important for entities with money galore. To manage it properly and utilize it effectively, businesses invest in projects and research for products & services. However, they don’t do so blindly, rather they utilize financial modeling services in Singapore and other metropolitan cities for judging the financial viability of these projects.

Top Financial Modeling Services In Singapore

Before we get into financial modeling services in Singapore and similar services in other metropolitans as well as the value offered to Singaporeans by the best financial modeling services in Singapore, we need to lay the groundwork for the fundamentals of financial modeling. Financial modeling services in Singapore or any other country are not beneficial to everyone. These services serve a specific group of people or professionals more than any other so knowing a little about them will enhance your knowledge of these services by giving you an explanation of their current format and state.

Furthermore, knowing about the best financial modeling services in Singapore would be of little use to you if you could not estimate or verify the recommendations with a personal analysis. To conduct a personal analysis and see the veracity of our top recommendations, you need to thoroughly imbue your memory and recall with the fundamentals of finance and modeling and the subsequent value of their combination.

You need to also know the value of different financial models i.e. the shapes and sizes they inhabit and the conditions under which they can be utilized. There is also room to learn about the elements of financial modeling, the skills required for modeling, and its value in the market today.

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Overall, this article will take you for a brief ride across the world of financial modeling, emphasizing financial modeling services in Singapore that you can avail as a business to fulfil business needs for the long and short term and also educate you on the qualities to look for in a good financial modeling service. So, without further ado let’s begin with…

Fundamentals of Finance:

Finance is an important subpart of economics that deals with questions of money, currency & its valuation, and capital exchanges and receipts. It’s a study of financial systems that operate between individuals, corporations, governmental authorities, and foreign countries. Ultimately, finance is the effective channelling of private and corporate savings as well as investment into productive purposes, which also includes the management and allocation of the available funds to a company. For a fundamental understanding of financial modeling services in Singapore, the simple categorical distinctions in finance need to be digested. Thus, the major areas of categorical distinction in finance are as follows:

  • Personal Finance:

A big base of finance is individuals who are trying to maximize their savings, real incomes, and return on investment portfolios that they managed to build over some time. They need to be cognizant of all changes in the economy that affect their wealth and income. These activities about individuals and their concerns of risk and future returns about finance are termed personal finance. Personal finance aims to secure loans at the cheapest rates, save on payments and increase returns as well as reduce financial risk as per the person’s choice. Usually, personal finance professionals help individuals learn about certain insurance policies and management of credit facilities and keep on track with their personal financial goals through constant checks on tax policies, saving schemes, and pension fund interests.

  • Business or Corporate Finance: 

Corporate finance deals with the savings, budgets, and transactions of businesses. It is aimed to enhance the value of shares and equity for the shareholders by improving the valuation of a business. Business finance deals with the issues of financial transactions and the allocation of given resources. Allocation of resources is vital to the wellness of a corporation’s production of goods and services. Optimal allocation guarantees that there is little waste generated and focuses on the betterment of managerial processes to elicit the greatest value from the human resources employed. Corporate finance manages the risk factors and hassles of managerial decisions by seeking those that have benefited from it before. Financial modeling services in Singapore are fashioned to serve businesses to make better decisions for improving the number of capital assets and general profitability. There are three major fields of study in corporate finance.

They are:

  • Capital Structuring – This refers to the optimal amount of capital to be utilized considering the cost of capital and its repayment.
  • Dividend Policy Inclinations – It refers to the inclination for the release of corporate profits as dividends to shareholders or investment in resources for further product development.
  • Budgeting (Capital) – It refers to the value estimation of a project, deciding upon various factors and future returns derived from financial models. This aspect of corporate finance is the hub for financial modeling services in Singapore or other major cities. 

Within this type of finance, there are financial managers and corporate financiers who deal with managing business transactions and issues in the long & short term. They are vested with the responsibility for achieving financial goals & objectives. 

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  • Public Finance:

It is the finance that pertains to public authorities, services, and undertakings with a particular aim to promote economic stability, enhance economic growth variables and establish social equity within reasonable bounds in Singapore. Financial modeling services in Singapore are opted for by the state authorities and reasonably so since public finance policy affects millions of its residents and any changes in it must be reviewed thoroughly before their application. Public finance is primarily concerned with plans that span years or decades.

Therefore, these plans need to be crafted after some deliberation and with future trends in mind. Allocation of resources, requirements of funding, and the undercurrents of inflation as well as other economic trends need to be heeded before a plan is put into action. Furthermore, public finance also caters to public sector undertakings and calculates the expenses and incomes at play. Moreover, the budgeting process and the valuation of public works are also part of the responsibilities of public finance. Public finance ultimately aims to stabilize the economy and reduce the strain of trade cycles as well as inflationary/deflationary strains.

These are the three major categories of finance that need to be known for understanding the practical applications of financial modeling services in Singapore. However, hold your horses because we must tell you a little about Singapore and its people and economy to help you catch a glimpse of the importance of these financial services. So, let’s know more about…

Singapore – A Multiracially Dense Country

Also known as the Republic of Singapore, Singapore is a composition of islands and satellite islands across the southern hemisphere that hosts a rich cultural heritage under its flag of golden felines. Singapore stands tall among the South-Asian Pacific region as one of the four Asian lions, the other being Hong Kong, South Korea, and Taiwan due to its massive economic growth in the late twentieth century.

This growth has resulted in a developed market economy that is trusted globally by the USA, China, and the European Union. It has also led to one of the best GDP per capita rates in the world and thus, the Singaporean Dollar is not only termed as a reliable currency but one that is powered by a dynamic, innovative, and diversified economy. It is also a tax haven and is liberal in its ease of business, lending great hope to predictive financial modeling services.

A government that changes policies far too often can blur and impart uncertainty to predictions formulated by financial modeling services. However, financial modeling services in Singapore can work without any unforeseen encumbrances. The financial authorities also provide social security for poor households so the fluctuations in market forces are dampened in full or partially and thus modeling can be accurate and more reliable. Overall, Singapore is a place where financial modeling services can bloom to their fullest.

Financial Modeling: What Is It All About

Financial modeling is the creation of models for furnishing financial projects by evaluating them on the value they will provide to a business. They can be used to provide your investment and business decisions with much-needed support. They can further your projects by clearly stating their future value in real terms of today.

It is a financial ledger that maintains the record of transactions and distils the totality of these transactions into future predictions while constantly accounting for the variability of market dynamics. It can also predict the effect on individual companies after a merger or acquisition. People who meddle with financial figures and numbers like investment bankers, analysts, and banking professionals are usually responsible for financial modeling and all kinds of services like financial modeling services in Singapore. 

Building a financial model appears to be a monumental task at first sight however in the world of finance inflation/ deflation are common phenomena. So, financial modeling is frequently nothing more than a few small modules and core principles interlaced to cast a very big shadow for the unacquainted.

The financial model crafted in most cases is based on three vital modules — an income statement, a balance sheet with clear assets & liabilities, and the various cash flows of a firm. They combine with several factors called additional modules to manifest the true essence of financial models. These additional modules are the depreciation schedule, equity schedule, and some other schedules that are manipulated over time to give a clear indication of the financial condition of previous business decisions and forecast the results of future decisions as well. 

Building a model from scratch is an enervating process. However, the following steps need to be followed to form a reliable model for business finance.

  • Firstly, the modeling professional looks over the current store of financial statements available. Quarterly, annual, and reports of specific departments are audited and the general financial direction, aims, and returns are wrung out from the statements. It gives an idea to the professional about the attitude of the company, and its importance in the industry and also aids them to discern the nature of the industry and generally-accepted practices.
  • Secondly, we enter historical data into the fray. Historical data and figures result in arranging financial values in predictable patterns. Models colour code these numbers and call the figures of the past three years as actual data that represents the financial conditions of the business.
  • Ratios of business indices and past growth rates are also indicative of the strategies of the business and their respective efficacy. They are also pivotal for accurate forecasting over time. 
  • Next, we move to collect projections and accurate forecasting for the next five-year period, or in some cases, the finance period may be as low as three years. Forecasting requires a set of assumptions to be collected over time that operate as the foundation of a project. 
  • Lastly, the core of the model lends it its flexibility and characteristic longevity until the financial figures are completely outdated as well as the assumptions are flawed. This occurs to the volatility of market changes and how economics is a game of expectations. Ultimately, financial models account for this fidelity by interlacing different statements and the variables within them to automatically adjust the model with the changes occurring in the real world.

The aforementioned steps are cumulatively known as the general steps for financial modeling services in Singapore and all other services available around the world that yield good results. Now, that we have a grasp on the basic procedure of financial modeling and the concept of financial modeling. 

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Best Financial Modeling Services in Singapore:

1. Financial Modeling & Audit by Vallaris™ 

Vallaris™ is a firm that offers incredible financial modeling services and model audits in Singapore. They have a sophisticated hands-on deck with years of experience that honed their skills to provide the best services that fulfill your every need. It is a transparent brand that exhibits its knowledge briefly on its website.

This is an incredibly useful business practice because it gives away free information backed by the expertise of professionals and it’s all for no cost at all. Vallaris™ also gives away free advice on financial model building on its website with an accurate representation of a good financial model and the appropriate time that such a model requires over some time.

They offer many services for financial modeling and many vantage points from where one can start financial modeling. Vallaris™ can provide you with functional financial models that can plan for future corporate growth, meet statutory reporting requirements and comply with regulations as well. Furthermore, Vallaris™ helps in the risk management of future development projects through scenario planning and project testing.

In case you are vesting your money and funds on a single high-risk project, and you require a sturdy and reliable model that aligns well with your financial goals then Vallaris™ is the right option for you. it also offers its services only to brands that meet certain criteria and is well worth the spend as per their incredible testimonials from high court judges to financial accounting professionals on the payroll of government bodies, Vallaris™ has served them all and satisfactorily so.

2. Financial Modeling by PwC Singapore –

Financial models are typically developed and utilized to assist business decisions. You can study the financial impacts of strategic decisions and bolster your business strategy or financing decisions with the help of insightful data from sound financial models. PwC Indonesia can provide value to your operation by maximizing the utility of your “FM” (financial model) as a tool to make choices. Along with our FM, there is a precise financial and tax assessment. 

PwC Singapore financial modeling is based on three principles.

These are:

Transparency:

  • They provide a clear and transparent structure that separates the distinct financial categories of output, input and calculation process. 
  • They ascertain that financial spreadsheets are logical in their progression with little to no error and inconsistency in calculation results and no sign errors.
  • Some models may also suffer from presuppositions the model that reduces the output to the required result. They focus on minimizing the use of circular references that lead to such phenomenon
  • Reduction in the use of macros to develop rather than gathering data on the business level

Flexibility:

  • No hard coded formulae for the data inputs to maintain the adjustability of the model and its overall ability to adapt over time. Only hard-coded information is focused on assumptions of the financial model to ensure a secure foundation for further modeling and analysis.
  • Scenario manager is given significant priority as the managers are tasked with managing multiple financial scenarios.
  • Formulae are not used casually but are utilized with consistency and are verified to maintain the overall quality of the financial model.

Presentability: 

  • Units with numerical data of significance are stated clearly and concisely to avoid misunderstanding. This also allows for a clearer application of assumptions and calculations. 
  • How does any program settle its problems while it is in operation? Every program operates with the appropriate checks and balances as well as alerts that relay information of failure or error in working to financial modeling professionals.
  • Data categorization and a distinct heading structure for the spreadsheet data and figures
  •  Plots and line summaries for output summarize relay the messages and help stakeholders ease themselves into the insights developed through financial modeling. 

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Singapore PWC Also Provides a Variety of Financial Modeling Services:

  • Assumption Review – It is a service focused on a business’s key drivers and whether the assumptions chosen by the business are reasonable and align with business goals. It also solicits the additional factors that have been taken into account and reviews whether they have been chosen properly.
  • Development Of Financial Model – This aims to provide you with the perfect financial model to suit your needs as a business owner. They use Excel as a model creator that will utilize industry standard functions for ease of use and transparency of results & functioning. 
  • Independent Financial Model Review Through Proprietary Software – This software utilizes a lot of financial formulas and data and checks for appropriate use. Furthermore, the integrity of the model, the natural flow of logical concepts, and appropriate documentation and reasons for the choice of the present set of assumptions are also a piece of the pie under this independent review. Finally, all these variables are scrutinized under the lens of established financial goals and an expert opinion is furnished for the perusal of the company. It acts as a reinforcer of the prevalent financial model or can also help augment previously deficient aspects of the financial model.  

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FAQs

Q1. What are the important skills required for financial modeling?

Some of the most important skills in today’s day and age for not only creating a good financial model but also for becoming a good financial modeling professional are as follows:

  • A comprehensive understanding of accounting and business finance
  • Profound skillset in MS Excel
  • Ability to develop a logical mental model and realistic framework for solving key issues
  • Distilling large accounts and figures into simpler financial numbers
  • Close affinity with financial statements of all kinds and how they are linked
  • Attention to detail regarding numerical data
  • Good communication and presentation skills to convey insights to shareholders

These are the major skills required for following a financial modeling profession.

Q2. What are the different types of financial models prevalent in the business world today?

The few types of financial models prevalent today are:

  • The Three statement model of a balance sheet, income statement & cash flows
  • Discounted cash flow model (DCF)
  • Mergers & Acquisition model
  • Initial Public Offering Model for companies that share equity publicly.
  • Leveraged Buyout Financial Model

Q3. When is financial modeling & audit required?

Financial modeling & audit is required to solve the issues such as reliability weaknesses of a model, consistency of formula usage, and reliability of formulae’s terms. The flow of logic is also assured by auditing a model. Furthermore, data entry presentability, transparency, and proper sequencing are also clarified through an audit. 

Conclusion:  

We hope you learned something of value through this financial modeling article and will see the services offered by modeling in a different light. Thank you. 

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